Manufacturing sector posts slower growth

Philippine factory output slightly weakened in August, showing the impact of weather disturbances on the manufacturing sector during the month.

Data from the National Statistics Office showed that the country’s manufacturing output grew by 3.5 percent in August, which was slower than the revised 3.7 percent in July.

“Extraordinary events in August, particularly the destructive monsoon rains, pulled down manufacturing activity,” Cid Terosa of the University of Asia and the Pacific said via text message.

August had fewer working days with two long weekends during the month (during a four-day holiday from Aug. 18 to 21 and a three-day break from Aug. 25 to 27) and the suspension of work in certain days due to flooding brought by the monsoon rains.

“The (manufacturing) sector has to gather more momentum in the future (so it can) drive economic growth,” Terosa added.

According to the NSO, 10 of the 20 major sectors included in the Monthly Integrated Survey of Selected Industries (MISSI) posted year-on-year growth in production volume in August.

Double-digit increases were posted in footwear and wearing apparel (75.1 percent), furniture and fixtures (43.8 percent), transport equipment (38.2 percent), wood and wood products (30.4 percent.), publishing and printing (17.8 percent), food manufacturing (16.6 percent), textiles (14.3 percent) and fabricated metal products (12.6 percent).

The production of electrical machinery and machinery except electrical grew 8.8 percent and 8.9 percent, respectively.